Canterbury/Marlborough breeding and finishing sheep and beef

Model chapter

This chapter contains model results and commentary from the 2009 pastoral monitoring programme as a printable PDF. The chapter provides information on the production and financial status of the Canterbury/Marlborough breeding and finishing sheep and beef pastoral model farm. Model chapters will no longer be published in the pastoral monitoring report.

Data release

This release provides key points and budget tables from the 2009 sheep and beef monitoring programme for the Canterbury/Marlborough breeding and finishing sheep and beef model. Final results from the 2009 monitoring round, with commentary on the model are due for release in late October 2009.

Key points

Farm production in 2008/09 was down on the previous season following a drop in breeding ewe numbers associated with a poor growing season, uncertainty about the future of the sheep meat sector, and expansion of alternative land uses, such as beef, and dairy grazing.

Farm working expenses increased 5 percent to $185 600 in 2008/09 compared with $177 100 in 2007/08. This was despite holding expenditure levels as much as possible.

Farm profit before tax increased from $14 700 in 2007/08 to $29 100 in 2008/09. This was due to better stock prices and close control on expenditure.

Returns are expected to drop in 2009/10 because of lower cattle prices and easing in the average lamb prices from $80.95 to $76.56. Farm expenses are expected to drop 8 percent mainly due to lower fertiliser, feed and repairs and maintenance expenses. Farmers are expected to be very unhappy with the 2009/10 result but feel that there are few options for increasing returns.

Information about the model

This model represents 1555 finishing breeding farms in coastal Marlborough and Canterbury. Farms are located on the dry downs and plains, in irrigated areas, and in the higher rainfall upper plains. There is a wide range of farm sizes, stocking rates, stock classes, and performance in this region. The farms in the model have an average effective area of 369 hectares and normally run 9–10 stock units per effective hectare.